Blockchain assets become the new favorite in the derivation market, enhancing collateral efficiency

With the continuous development of the cryptocurrency industry, more and more trading platforms are beginning to adopt blockchain-native assets such as USDC and tokenized government bonds as Collateral to improve the efficiency of the derivation market. These assets not only have stability but also provide returns, while complying with regulatory requirements, making them very attractive to institutional investors seeking capital optimization.

Recently, a major cryptocurrency derivation trading platform announced that after obtaining approval from the U.S. Commodity Futures Trading Commission (CFTC), USDC will be accepted as collateral for margin futures. This marks the first time USDC has been used as collateral in the U.S. futures market. The platform stated that it will work closely with the CFTC to promote the implementation of this innovation. This business will be conducted through a qualified custodian regulated by the New York Department of Financial Services.

At the same time, tokenized government bonds are also emerging in the derivation market. A digital asset company recently announced that a large asset management company's dollar institutional digital liquidity fund (BUIDL) is now available as collateral on multiple cryptocurrency trading platforms. This fund is backed by cash and US government bonds, and its current managed asset scale has reached 2.9 billion dollars. By accepting BUIDL as margin, these platforms enable institutional traders to earn additional returns while engaging in leveraged trading.

Industry experts point out that assets like USDC can achieve near-instant settlement and are widely recognized across various trading platforms. At the same time, tokenized government bonds are actively being used by some leading trading venues to improve capital efficiency and risk management levels while still providing returns for investors.

These development trends indicate that the cryptocurrency derivation market is shifting towards a more efficient and transparent direction. Notably, these initiatives echo the suggestions made by CFTC acting chair Caroline D. Pham last November. She urged companies to explore the application of distributed ledger technology to non-cash collateral and pointed out that asset tokenization has achieved success in various fields, including digital government bond issuance, institutional repurchase, and payment transactions.

With the support of regulatory agencies and the proactive exploration by market participants, the application prospects of blockchain assets in the derivation market are broad, promising to bring more innovation and efficiency improvements to the entire financial system.